Bitcoin (BTC) surpassed below $20,000 after Wall Street opened on Sept. 27 as US stocks inched higher.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
US Dollar Has Room to Play – Traders
Data from Cointelegraph Markets Pro and TradingView confirmed that the $20,000 level barely remained as provisional support on the day.
BTC/USD had hit local highs of $20,344 overnight on Bitstamp, while the retracement of US dollar strength slightly eased risk assets across the board.
The S&P 500 and Nasdaq Composite Indexes were up 0.4% and 0.65%, respectively, after two hours of trading, but subsequently reversed.
At the same time, the US Dollar Index (DXY) fell 0.15% on the day, back below the 114 mark but still close to its highest level since mid-2002.
“The US Open is coming up. Green numbers while yields & $DXY correct,” commented Michaël van de Poppe, Founder & CEO of trading company Eight.
“Time for Q4 to be good for crypto.”
However, popular trader Crypto Tony warned against assuming that DXY made a big high.
“Bad news for the Bitcoin pump, the dollar hasn’t quite peaked yet so we’re looking for more pumps in the dollar and pullbacks in $BTC,” he decided.
“Keep both of these in mind if you plan on using BTC.”
US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView
Binance’s BTC/USDT volume hits an all-time high
Days before the month’s close, further BTC price volatility was expected as traders called for October – traditionally a better month than September for crypto redemption – to deliver the goods in 2022.
Relative: Older Bitcoin is leaving its wallet after 10 years of hibernation
“Tracking price action over the past decade, September was by far the worst-performing month for BTC – it only closed positive 20% of the time,” noted crypto Kaleo, a popular trading account, in a Sept. 26 thread .
“Silver lining – October was one of the best months for BTC – positive 78% of the time with a median gain of 28%.”
A close above $20,000 would be just enough for Bitcoin’s first “green” September since 2016.
Chart of monthly BTC/USD returns (screenshot). Source: coin jar
Meanwhile, in a sign of what the monthly close might hold, major exchange Binance recorded its highest-ever daily trading volume for its BTC/USDT pair, with over 439,000 BTC equivalents changing hands.
BTC/USDT 1-day candlestick chart (Binance) with volume. Source: TradingView
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